Complete Guide to Closing Costs for Home Buyers

Many first-time buyers focus on the down payment and forget about closing costs. These additional expenses typically range from 1.5% to 4% of the purchase price—a significant amount that needs to be factored into your home buying budget.

Beyond the Down Payment

On a $600,000 home, closing costs mean $9,000 to $24,000 on top of your down payment.

Land Transfer Tax

The biggest closing cost in most provinces:

Ontario

• 0.5% on first $55,000
• 1% on $55,001 to $250,000
• 1.5% on $250,001 to $400,000
• 2% on amounts over $400,000
• Toronto adds another 2%

First-Time Buyer Rebates

• Ontario: Up to $4,000 rebate
• Toronto: Additional $4,475 rebate

Check your province's specific rates—they vary significantly.

Legal Fees

Expect to pay $1,500 to $2,500 for:

• Title search and examination
• Document preparation
• Registration of mortgage
• Closing adjustments calculation
• Trust account administration

Planning Your Budget?

Use our Closing Costs Calculator to get a personalized estimate for your purchase, or get pre-approved and we'll help you plan for all your costs.

Title Insurance

Protects against:

• Title defects discovered later
• Survey issues
• Fraud
• Zoning violations

Cost: $300 – $500

Most lenders require it, and it protects you too.

Home Inspection

Essential but technically optional:

• General inspection: $400 – $600
• Specialized inspections: $200 – $400 each

- Radon testing
- Mold inspection
- Pest inspection
- Septic inspection

Never skip the inspection on a resale home.

Appraisal Fees

• Often covered by lender
• If required: $300 – $500
• May need specialty appraiser for unique properties

Other Costs to Consider

First-time buyer with rebate: $11,375 - $4,000 = $7,375

FAQ

Q: Can closing costs be added to the mortgage?
A: Generally no. Closing costs must be paid from your own funds at closing.

Q: Are closing costs tax-deductible?
A: Not for principal residences. Investment properties may be different.

Q: What's a closing adjustment?
A: Reimbursing the seller for prepaid property taxes, condo fees, etc. pro-rated to closing date.

Q: When are closing costs due?
A: Your lawyer collects them before closing. Have funds ready about a week before.

What's Next

Get pre-approved and we'll help you plan your complete home purchase budget, including all closing costs.